Kof Kofol ola a eskoslovensko 1Q1 Q16 resu sult lts 2 May - - PowerPoint PPT Presentation

Kof Kofol

• la

a Československo

1Q1 Q16 resu sult lts

2 May 2016

3 Kofola Group results 1Q16 | Investor presentation

Kof Kofol

• la gro

a group up key key hig highl hlight ights

4 Kofola Group results 1Q16 | Investor presentation

Kof Kofol

• la gro

a group up key key hig highl hlight ights

1 253 1 466 1Q15 1Q16

Revenue (CZK mn)

145 154 1Q15 1Q16 EBITDA (CZK mn) 47% 8% 25% 12% 8% Carbonated beverages Non-carbonated beverages Waters Syrups Other Product revenue segments 40% 21% 28% 8% 3% Czech Republic Slovakia Poland

Slovenia Export Geographical revenue segments

1,14 1,53 2015 1Q16 Net debt/EBITDA 21

• 21

1Q15 1Q16 Profit/(loss) for the period (CZK mn)

5 Kofola Group results 1Q16 | Investor presentation

Kof Kofol

• la gr

grou

• up key hi

p key high ghli lights ghts

Segment revenues 1Q16 % Carbonated beverages 683.6 47% Waters 368.5 25% Syrups 174.3 12% Non-carbonated beverages 119.8 8% Other 120.1 8% Total 1 466.3 100% EBITDA 153.8 Total assets 8 191.9 Equity 2 862.8 Net debt 1 703.2 Net debt/12mEBITDA 1.53 Net debt/Equity 0.59 EPS attributable to shareholders of Kofola ČeskoSlovensko [CZK/share] (0.93)

Key financial data [mCZK]

6 Kofola Group results 1Q16 | Investor presentation

Ou Our ma r main in br bran ands

7 Kofola Group results 1Q16 | Investor presentation

Ne New pr w prod

• duc

ucts ts in in 201 2016

Kofola Apricot 1.5l – new format Apricot Kofola is now available in 1.5l PET bottles. Kofola Melon 0.5l Kofola family has new member. The melon joins the

• riginal, apricot, citrus, cherry, extra herbs, vanilla and

guarana flavours. The product is available in PET bottles

• f 0.5l.

Top Topic Lemon 1.5l, 0.5l Popular Top Topic has new refreshing taste – lemon. The product is available in PET bottles of 1.5l and 0.5l. Semtex pomegranate New taste of energy drink Semtex – pomegranate will support strong growth on the Czech and Slovak market. Radenska 1.5l, 0.5l, 0.25l – new market Radenska Original is now available on Slovak market in 1.5l PET, 0.5l PET and 0.25l glass bottles. Arctic flavoured waters Arctic low sparkling flavoured waters – orange, lime & mint, grapefruit - are available on the Polish market.

8 Kofola Group results 1Q16 | Investor presentation

Ne New pr w prod

• duc

ucts ts in in 201 2016

Paola Super Barman – Blue Curacao, Mojito, Grenadine 0.97l Paola Super Barman, syrups dedicated for gastro segment, are now available in flavours Blue Curacao, Mojito and Garanadine in 0.97l bottles on the Polish market. Jupík Orange 0.33l Jupík Orange, new taste of children drink, is now available in 0.33l PET bottles on the Polish market. Radenska Orange, Mint&Lemon, Raspberry Radenska has now new flavours – Orange, Mint&Lemon and Raspberry – available in 1.5l PET, 0.5l PET and 0.25l glass formats on the Slovenian market. Oaza Thyme, Linden New tastes of Oaza waters are available in 1.5l PET and 0.5l PET bottles on the Slovenian market. Nara, Inka, Voćko – new brands Nara (orange lemonade), Inka (tonic water) and Voćko (syrups) are now part of the Group´s portfolio for Croatian market. The Group also produces and distributes PepsiCo products on the Croatian market since the beginning of 2016.

9 Kofola Group results 1Q16 | Investor presentation

ma main in ev even ents ts 20 2016 16

Expansion in the Adriatic region Since January 2016, the Group became an exclusive producer and distributor of the PepsiCo portfolio products on Croatian market. The cooperation with PepsiCo on Slovenian market works for more than 20 years. In first quarter of 2016, the Group acquired brands Voćko, Nara and Inka from the Croatian non- alcoholic drinks producer Badel 1862. The Group also became a distributor of Badel´s drinks in HoReCa segment. These opportunities represent an extension of the Group´s portfolio for Croatian market and an expansion of the presence further to the region. Changes in the structure The Group took first steps to commence the process of streamlining its structure through the cross-border merger of Kofola ČeskoSlovensko a.s., Kofola CS a.s., Kofola S.A., Kofola holdinška družba d.o.o. and PINELLI spol. s r.o. At the end of the process, the Group´s structure will be very efficient and will enable a fast dividend stream from business entities directly to the top holding company. Also, on 26 April 2016, Kofola holdinška družba d.o.o. announced the commencement of a squeeze-out procedure of Radenska d.d.´s minority shareholders who hold 2.38% of shares. At the end of the process, Kofola holdinška družba d.o.o. should became the sole shareholder of Radenska d.d.

11 Kofola Group results 1Q16 | Investor presentation

• 5 °C

5 °C 15 °C 25 °C 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

2014 2015 2016

Ma Mark rket co et condi nditions tions in in 201 2016

• increasing household consumption
• decreasing household unemployment and

increasing real wages

• slight increase of sugar price
• stable environment
• stabilisation of consumption in the most

profitable gastro segment

• faster increase of turnover in discount

chains 0 mm 100 mm 200 mm 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

2014 2015 2016

Precipitation Temperature

Weather her in the the central ral europ rope

12 Kofola Group results 1Q16 | Investor presentation

re resul ults ts of

• f KOF

KOFOL OLA A Gro roup up

Results comparison 1Q16 1Q15 Change Change CZK mn CZK mn CZK mn % Revenue 1 466.3 1 253.0 213.3 17.0% Cost of sales (949.9) (803.1) (146.8) 18.3% Gross profit 516.4 449.8 66.5 14.8% Selling, marketing and distribution costs (386.9) (339.0) (47.9) 14.1% Administrative costs (104.1) (79.8) (24.2) 30.3% Other operating income, net 0.9 1.3 (0.4) (29.5%) Operating result 26.3 32.3 (6.0) (18.6%) EBITDA 153.8 144.6 9.2 6.4% Finance costs, net (39.1) (7.4) (31.7) 428.7% Income tax (8.3) (3.5) (4.8) 137.1% Profit/(loss) for the period (21.2) 21.4 (42.5) (198.9%)

• attributable to shareholders of the parent

(20.6) 21.5 (42.1) (196.1%)

13 Kofola Group results 1Q16 | Investor presentation

re resul ults ts of

• f KOF

KOFOL OLA A Gr Grou

• up [MC

MCZK ZK]

Gross margin

• 0.7 p.p.

35.9% 35.2% 1Q15 1Q16 EBITDA margin

• 1.0 p.p.

11.5% 10.5% 1Q15 1Q16 Revenue

+17.0%

1 253.0 1 466.3 1Q15 1Q16 EBITDA

+6.4%

153.8 144.6 1Q15 1Q16 EBIT

• 18.6%

32.3 26.3 1Q15 1Q16 EBIT margin 1Q15 1Q16 1.8% 2.6%

+1.2 p.p.

14 Kofola Group results 1Q16 | Investor presentation

re resul ults ts of

• f KOF

KOFOL OLA A Gr Grou

• up

p [MC MCZK ZK]

Total assets

• 3.5%

8 491.0 8 191.9 31/12/15 31/3/16 Working capital

• 88.9%

31/3/15 31/3/16 (75.8) (143.2) Net debt/EBITDA +0.39x 31/12/15 31/3/16 1.14x 1.53x Net debt +33.4% 1 276.9 31/12/15 31/3/16 1 703.2 1Q15

• 85.0%

Cash flows from operations (182.8) (98.8) 1Q16 CapEx 1Q15 1Q16 +65.4% 129.6 214.4

15 Kofola Group results 1Q16 | Investor presentation

re resul ults ts of

• f KOF

KOFOL OLA A Gr Grou

• up

p [MC MCZK ZK]

• 3.1 p.p.

Net profit margin

1Q15 1Q16 1.7% (1.4%)

Net profit attributable to shareholders

• f Kofola ČeskoSlovensko
• 196.1 %

21.5 (20.6) 1Q15 1Q16

EPS attributable to shareholders of Kofola ČeskoSlovensko [CZK/share]

0.97 (0.93)

• 196.1%

1Q15 1Q16

16 Kofola Group results 1Q16 | Investor presentation

geo geogr graph aphical ical segm egment ent sal ales es [MC MCZK ZK]

40% 37% 21% 23% 28% 39% 8% 0% 3% 1% 1Q16 1Q15 Czech Republic Slovakia Poland Slovenia Export

460.2

292.3 489.2 0.0 11.3 592.0 302.6 405.9 124.5 41.4

+266.7%

• 17.0%

+3.5% +28.6% +100%

Czech Republic Slovakia Poland Export Slovenia

1Q15 1Q16 Legend:

17 Kofola Group results 1Q16 | Investor presentation

Pr Prod

• duc

uct segm egmen ent t sal ales es [MC MCZK ZK]

47% 50% 25% 20% 12% 16% 8% 8% 8% 6% 1Q16 1Q15 Carbonated Waters Non-carbonated Syrups Other

621.0 249.0 199.4 104.7 78.9 683.6 368.5 174.3 119.8 120.1

+14.4 %

• 12.6%

+48.0% +52.2% +10.1% Carbonated beverages Non-carbonated beverages Waters Syrups Other

1Q15 1Q16 Legend:

19 Kofola Group results 1Q16 | Investor presentation

Segm egment ent po positi itions

• ns*

PL CZ SK SI Cola beverages 3 2 1 3 Carbonated beverages

• 3

2 2 Waters

• 5

1 1 Syrups and concentrates 2 1 2

• Beverages for children

6 2 2

• Energy drinks
• 4

>6

• Leader

Viceleader Legend:

* estimated position of the Group in the main segments on the retail soft drinks market

20 Kofola Group results 1Q16 | Investor presentation

• Rollout of successful brands to other markets where the Group Companies operate
• Building and/or creation of brands with functional/emotional features
• Using production/distribution licenses, introduction of global brands (Rauch, Orangina, Pickwick Ice Tea, RC Cola, Evian, Badoit)
• Engaging the customers in the promotion of positive emotions related to the Group’s brands

Approach

• ach to

to ma marke ket t tr trends s and Deve velopm lopment ent

• Ambition to be a market consolidator
• Constant search for leads of unexplored brands (companies)
• Acquisition of Vinea, Citro Cola, Semtex, Mr. UGO, Mangaloo and Radenska in the last 7 years
• Strengthening brands to be more important for retailers
• Focus on terms and conditions with retailers
• Proper pack/channel tactics
• Focus on impulse products (portfolio enhancement)
• Development of the impulse channels
• Development of cooperation with hotels, restaurants and catering (HoReCa)
• Entrance to the "on-the-go" market (kiosks, vending machines, gyms, schools, work places etc.)
• Increasing share of small formats in the product portfolio (most of the new formats are up to 0.5 litre)
• Increasing number of supplied restaurants (direct distribution in Slovakia since 2009, in the Czech Republic since 2014)
• Dedicated sales team for HoReCa clients in the Czech Republic
• Gradual conversion of products to preservative-free, healthy innovations
• Promotion of healthy life style (www.hravezijzdrave.cz, www.hravozizdravo.sk, www.trzymajforme.pl)
• More healthy beverages (water, children’s beverages) with lower sugar content compared to other competitors and

beverages with herbs and tree extracts (Mr. UGO juices, fresh drinks)

• First drinks with stevia (natural sweetener - without calories) - Kofola bez cukru (Sugar free), Jupik with stevia.
• Hot filling and aseptic lines allowing the new products without preservatives (syrups, ice tea, beverages for children)

22 Kofola Group results 1Q16 | Investor presentation

Mi Missio ion n an and vi vision ion

23 Kofola Group results 1Q16 | Investor presentation

Hi Histor tory y of

• f Ko

Kofo fola la Gr Grou

• up

2002 2003 2007 2008 20 2012 20 2015 15

Establishment of Kofola brand Acquisition of Kofola brand and

• riginal recipe by

predecessor of Kofola CZ Today: Leading brand of Czech and Slovak market Today Kofola is No.1 in HoReCa market in Slovakia and no. 2 in Czech Rep with market shares at CZ: 23.8% SK: 36.5% HoReCa Started in Czech & Slovakia Rajec Brand Built from scratch, now No 1 in Slovakia Acquisition

• f Hoop

(Hoop and Paola brands) Today: Leading syrup brand and 3rd cola brand in Poland Acquisition

• f Vinea

brand in Slovakia (most popular CSD in Slovakia) Today: Vinea is most sold beverage in its category in Slovakia Acquisition of Ugo group (fresh juices) Today: growing number of fresh Bars from 12 to 63 Acquisition of Radenska, No 1 water producer in Slovenia Conditional agreement to acquire 40% stake in Water Holding Group (leading Slovakian water producer), brands: Budiš, Fatra, Gemerka and Zlatá Studňa.

Kofola Group results 1Q16 | Investor presentation 24

Gr Grou

• up

p str truc uctu ture re

Kofola ČeskoSlovensko a.s. (h)

100 %

Kofola S.A. (h)

100%

Kofola CS a.s. (h)

100%

Kofola a.s. (p)

100%

Pinelli

• spol. s r.o.

(b)

100%

Kofola a.s. (p)

100%

Santa- Trans s.r.o. (t)

90%

Ugo Trade s.r.o. (p)

100%

Kofola holdinška družba d.o.o. (h)

97,62 %

Radenska d.d. (p)

100%

Radenska Miral d.o.o. (b)

100%

Sicheldorfer GmbH (i)

100%

Radenska d.o.o. (i)

100%

Radenska d.o.o. (i)

100%

HOOP Polska

• Sp. z o.o. (p)

100%

Alofok Ltd (h)

50%

OOO Megapack (p)

100%

OOO Trading House Megapack (d) p - sales and production d - distribution t - transportation h - holding company b – owner of brand I - inactive On 4 April 2016, Pinelli spol. s r.o. was sold from Kofola a.s. to Kofola ČeskoSlovensko a.s.

as at 31 March 2016

Kofola Group results 1Q16 | Investor presentation 25

Gr Grou

• up

p str truc uctu ture re

p - sales and production d - distribution t - transportation h - holding company b – owner of brand I - inactive

after the planned merger and squeeze-out of Radenska d.d.´s minority shareholders

Kofola ČeskoSlovensko a.s. (h)

100%

Kofola a.s. (p)

100%

Kofola a.s. (p)

100%

HOOP Polska

• Sp. z o.o.

(p)

100%

Santa- Trans s.r.o. (t)

90%

Ugo Trade s.r.o. (p)

100%

Radenska d.d. (p)

100%

Radenska Miral d.o.o. (b)

100%

Sicheldorfer GmbH (i)

100%

Radenska d.o.o. (i)

100%

Radenska d.o.o. (i)

100%

Alofok Ltd (h)

50%

OOO Megapack (p)

100%

OOO Trading House Megapack (d)

27 Kofola Group results 1Q16 | Investor presentation

Sha hare re pr pric ice and e and tu turn rnov

• ver

er at at PS PSE

Share price information 1Q16

Average share price 470.4 CZK Average daily transaction activity 1 508 pcs 300 350 400 450 500 5 000 10 000 15 000 20 000 25 000 Turnover (pcs.) Price (CZK)

28 Kofola Group results 1Q16 | Investor presentation

Sha harh rholde

• lders

rs str truc uctu ture re

KSM Investment S.A. 50.78% Tomáš Jendřejek 2.61% René Musila 2.61% Others 6.72% As at 31 March 2016 CED Group S.a.r.l. 37.28%

Share capital of Kofola ČeskoSlovensko a.s. comprises 22 295 thousand ordinary shares

30 Kofola Group results 1Q16 | Investor presentation

Con

• nta

tact ct

Should you have any question related to Kofola Group do not hesitate to contact our investor relations office:

Marti rtin n Rosypa sypal

e-mail: investor@kofola.cz tel.: +420 736 767 078 http://investor.kofola.cz/en Kofola ČeskoSlovensko a.s. Nad Porubkou 2278/31A 708 00 Ostrava Czech Republic Follow us at

31 Kofola Group results 1Q16 | Investor presentation

This presentation (“the Presentation”) has been prepared by Kofola ČeskoSlovensko a.s. (“the Company”). The Company has prepared the Presentation with due care, however certain inconsistencies or omissions might have appeared in it. Therefore it is recommended that any person who intends to undertake any investment decision regarding any security issued by the Company or its subsidiaries shall only rely on information released as an official communication by the Company in accordance with the legal and regulatory provisions that are binding for the Company. It should be also noted that forward-looking statements, including statements relating to expectations regarding the future financial results give no guarantee or assurance that such results will be achieved. The Board of Directors’s expectations are based on present knowledge, awareness and/or views of the Company´s Board of Directors´s members and are dependent on a number of factors, which may cause that the actual results that will be achieved by the Company may differ materially from those discussed in the document. Many such factors are beyond the present knowledge, awareness and/or control of the Company, or cannot be predicted by it. No warranties or representations can be made as to the comprehensiveness or reliability of the information contained in this Presentation. Neither the Company nor its directors, managers, advisers or representatives of such persons shall bear any liability that might arise in connection with any use of this Presentation. Furthermore, no information contained herein constitutes an obligation or representation of the Company, its managers or directors, its shareholders, subsidiary undertakings, advisers or representatives of such persons. This Presentation was prepared for information purposes only and is neither a purchase or sale offer, nor a solicitation of an offer to purchase or sell any securities or financial instruments or an invitation to participate in any commercial venture. This Presentation is neither an offer nor an invitation to purchase or subscribe for any securities in any jurisdiction and no statements contained herein may serve as a basis for any agreement, commitment or investment decision, or may be relied upon in connection with any agreement, commitment or investment decision.

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